Interest rate cuts reach a new record low

interest-ratesThere was talk at the end of last year that we may see further interest rate cuts in 2013, but many Mudgee home owners wondered if the rumours were too good to be true… well it turns out, they weren’t!  Yesterday the RBA had their monthly meeting, and slashed a further 0.25 per cent from the already record low cash rate, while hinting at possible further cuts to come.  This brings the cash rate to just 2.75 per cent.

When the rates dropped to 3 per cent it took most of the major banks several days to weigh up their next move, and in the end partial cuts were passed on.  However, yesterday’s decision has already seen the Commonwealth Bank, Westpac, National Australia Bank and Bank of Queensland rush to pass on the full interest rate cute, with the ANZ to make their decision at their regular monthly review this Friday.  We can only hope, for all Mudgee ANZ customers, that they make the same choice as their competitors have.

If you’re a Mudgee real estate owner on a variable mortgage, you have two options.  Use the rate cut as an opportunity to get yourself out of debt by reducing your monthly/fortnightly payment to the minimum required and paying off those bills that have been piling up with the leftover cash, or if you’ve been paying your mortgage off relatively easily each month, why not continue to pay off your mortgage at the old rate and build yourself up a little equity?

One thing we do know for sure is that the rate cut will be a welcome relief for many Mudgee home owners, and will hopefully help a lot of Mudgee families get back on top of their finances.

How do you view the latest interest rate cut?

 

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